$0/m cash flow. How to increase it?

[William S.]

I have a house on the market (former primary, was rental, now listed). If it doesn't sell I'm going to do some rehab work and keep it long term as a rental.

I have a really good interest rate 3.875% 30-year 20% down of $121k purchase price. The loan balance is currently $93,553, but no cash flow. See numbers below...

Purchase Price	$121,000
Rent	$1,200
Appraised Value	$125,000
Mortgage Balance	$93,553
Vacancy	$100.00
PITI	$746.97
Maintenance	$50
Future Cap-Ex	$100
PM	$120
Lease Fee	$83.33
Total Monthly Expenses	$1,200
Projected Cash Flow	-$0.30

I'm interested in possibly refinancing to reduce the mortgage payment (increase the cash flow). What type of mortgage would be a good option? I can't increase rent by rehab/adding living space. The house is small and is maxed out, space wise. Any other ideas? Thanks!

[Craig Curelop]

@William S. - Interest rates have shot up so i don't think refinancing will do you much good. 

@Brian Garrett brings up a great point. As long as it is more than one bedroom, you should definitely be able to get more if you rent by the room. If it's a two bedroom, I'd suggest trying to rent it by the room for $700 each. That would give you $200 of cash flow.

I am doing my first rent by the room with a larger house. I am going to get 33% more in rent for renting by the room.